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Proposal for Belize

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Proposal for Belize AFB/PPRC.8/7 23 February, 2012 Adaptation Fund Board Project and Programme Review Committee Eighth Meeting Bonn, 14 March, 2012 PROPOSAL FOR BELIZE I. Background 1. The Operational Policies and Guidelines for Parties to Access Resources from the Adaptation Fund, adopted by the Adaptation Fund Board, state in paragraph 41 that regular adaptation project and programme proposals, i.e. those that request funding exceeding US$ 1 million, would undergo either a one-step, or a two-step approval process. In case of the one- step process, the proponent would directly submit a fully-developed project proposal. In the two- step process, the proponent would first submit a brief project concept, which would be reviewed by the Project and Programme Review Committee (PPRC) and would have to receive the approval by the Board. In the second step, the fully-developed project/programme document would be reviewed by the PPRC, and would finally require Board’s approval. 2. The Templates Approved by the Adaptation Fund Board (Operational Policies and Guidelines for Parties to Access Resources from the Adaptation Fund, Annex 3) do not include a separate template for project and programme concepts but provide that these are to be submitted using the project and programme proposal template. The section on Adaptation Fund Project Review Criteria states: For regular projects using the two-step approval process, only the first four criteria will be applied when reviewing the 1st step for regular project concept. In addition, the information provided in the 1st step approval process with respect to the review criteria for the regular project concept could be less detailed than the information in the request for approval template submitted at the 2nd step approval process. Furthermore, a final project document is required for regular projects for the 2nd step approval, in addition to the approval template. 3. The first four criteria mentioned above are: 1. Country Eligibility, 2. Project Eligibility, 3. Resource Availability, and 4. Eligibility of NIE/MIE. 4. The fifth criterion, applied when reviewing a fully-developed project document, is: 5. Implementation Arrangements. 5. According to the Adaptation Fund Board Decision B.12/10, a project or programme proposal needs to be received by the secretariat no less than nine weeks before a Board meeting, in order to be considered by the Board in that meeting. 6. The following project concept titled “Belize Marine Conservation and Climate Adaptation Initiative” was submitted for Belize by the World Bank (WB), which is a Multilateral Implementing Entity of the Adaptation Fund. This is the second submission of the concept. It was first submitted as a project concept, to the 15th Adaptation Fund Board meeting, and the Board decided to: (a) Not endorse the project concept, as supplemented by the clarification response provided by the World Bank to the request made by the technical review; (b) Request that the World Bank reformulates the proposal taking into account the following issues: 1 (i) The use of funds from the Adaptation Fund for the creation of a trust fund is entirely unprecedented and presents a risk from the perspective that the Marine Conservation and Climate Adaptation Trust (MCCAT) will not achieve its outcome, be replenished with sufficient funds to operate, and finance projects that align with the Adaptation Fund’s results framework guidance. While the Board welcomes innovative approaches to adaptation and it is likely that the MCCAT, once established, would support adaptation measures, the proponent should place more or all emphasis on the marine conservation activities of the project; (ii) The proponent should clarify which indicators would be used to monitor project performance; (iii) The concept does not contain sufficient information to assess the cost- effectiveness of the proposed interventions, inter alia the size, scope, and area of sites; and the cost of the measures appears to be high given the intended outcome; and (iv) To bridge the gap between marine conservation and adaptation benefits, the sites should be established around the most vulnerable shorelines and consequently it is crucial to know where marine protected areas/no-take zones (MPA/NTZ) will be established. (c) Further request the World Bank to transmit the observations referred to under item (b) above to the Government of Belize, on the understanding that a revised concept might be submitted at a later date. (Decision B.15/12) 7. The current resubmission was received by the secretariat in time to be considered at the 17th Adaptation Fund Board meeting. The secretariat carried out a technical review of the project proposal, assigned it the diary number BIZ/MIE/Coastal/2011/1 and filled in a review sheet. 8. In accordance with a request to the secretariat made by the Adaptation Fund Board in its 10th meeting, the secretariat shared this review sheet with WB, and offered it the opportunity of providing responses before the review sheet was sent to the Project and Programme Committee of the Adaptation Fund. 9. The secretariat is submitting to the Project and Programme Review Committee the summary of the project, prepared by the secretariat, along with the final, revised submission of the proposal in the following section. The secretariat is also submitting to the Committee the technical review sheet in an addendum to this document. 2 Project Summary Belize – Belize Marine Conservation and Climate Adaptation Initiative Implementing Entity: World Bank Project/Programme Execution Cost: USD 520,000 Total Project/Programme Cost: 5,530,000 Implementing Fee: USD 470,000 Financing Requested: USD 6,000,000 Project/Programme Background and Context: The proposed concept focuses on the marine ecosystems of Belize, given the reef’s importance to livelihoods and serving as a buffer against storm surges. The concept takes a dual approach – both enhancing ecosystem function and therefore resilience through recovery and restoration, as well as by reducing the threat of encroachment and degradation caused by overexploitation and pollution. The objective of the proposed Adaptation Fund Project is to implement the priority ecosystem-based marine conservation and climate adaptation measures to strengthen the climate resilience of the Belize Barrier Reef System. Specifically, the project will support (i) the improvement of the reef’s protection regime including an expansion and enforcement of the Marine Protected Areas (MPAs) and replenishment (no-take) zones in strategically selected locations to climate resilience, (ii) promotion of sustainable alternative livelihoods for affected users of the reef, and (iii) building local capacity and raising awareness regarding the overall health of the reef ecosystem and the climate resilience of coral reefs. Component 1: Improving the Protection Regime of Marine and Coastal Ecosystems (USD 2,000,000) This component is aimed at programmatically mainstreaming specific climate change adaptation measures in the on-going efforts for the conservation of marine and coastal ecosystems by the GoB. This would be achieved through (i) expanding and securing the Marine Protected Areas (MPAs) and replenishment (no-take) zones in strategically selected locations to build climate resilience, (ii) strengthening the legal framework for the network of MPAs. The activities would include (a) creation of a network of no-take zones and MPAs, (b) enhancement of the enforcement of MPAs and no-take zones, (c) implementation of a comprehensive monitoring protocol, (d) strengthening of the legal and institutional framework for MPAs; (e) implementation of a Coastal Zone Management (CZM) Plan, and (f) providing necessary training to implement these activities. Component 2: Promotion of viable and sustainable alternative livelihoods for affected users of the reef (USD 2,450,000) This component would support economically viable and sustainable alternative livelihoods for local populations whose economic activities are directly impacted by the adverse effects of climate change as well as by the expansion of the no-take and MPA network. Promotion of sustainable alternative livelihoods would also contribute to reducing the anthropogenic stressors on the marine resources and, in turn, increasing the health of reefs and associated marine and coastal ecosystems and its resilience to climate impacts. The preliminary targets are the coastal communities that utilize the marine and coastal resources of Turneffe Atoll, Corozal Bay, and Southwater Caye as a principal source of income. This component would specifically support (i) creating jobs, (ii) targeted training, and (iii) provision of financial resources for initial capital investment in viable options intended for the vulnerable areas and populations. The Project 3 would support the diversification of the economic activities of the coastal communities by providing jobs and training for the repopulation of coral reefs with thermally resilient native varieties grown in coral nurseries, as well as poly-culture of marine products. Component 3: Raising awareness and disseminating information (USD 560,000) This component aims to (i) increase the understanding by local stakeholders of the value of marine conservation and impacts of climate change and build support among stakeholders of the importance of the National Protected Areas Policy and System Plan (NAPSP) to the long term sustainability of natural resources; and (ii) dissemination of information to promote learning and cooperation between
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